Workers’ Compensation Insurance 101: What Employers Need to Know

In Kentucky, workers’ compensation insurance is not just a safety net; it’s a legal requirement for nearly all employers. Whether you’re running a small business or managing a large enterprise, understanding your responsibilities under the Kentucky Workers’ Compensation Act is essential to protect both your employees and your business.

Who Needs Coverage?

All businesses in Kentucky that employ one or more individuals must carry workers’ compensation coverage. This typically includes full-time, part-time, temporary and even family-member employees. There are a few exceptions, such as certain agricultural operations, domestic workers in private homes with fewer than two full-time employees and some religious organizations. However, even exempt employers may benefit from coverage.

What Does It Cover?

If an employee is injured or becomes ill due to work, workers’ compensation insurance can help cover medical expenses, lost wages and rehabilitation services. Policies can also help protect employers from legal action.

Posting and Reporting Requirements

Employers must display a Kentucky Workers’ Compensation posting notice in a conspicuous location where employees regularly work. This notice must include the name of the insurance carrier, policy number and instructions for accessing medical care.

In the event of a workplace injury, employers are required to report the incident to their insurance carrier within three working days. If the injury results in an employee missing work for more than one day, the insurer must file a report with the Department of Workers’ Claims within one week.

Penalties for Noncompliance

Businesses that fail to carry proper workers’ compensation insurance may face significant penalties, such as financial fines and possible forced closure. Moreover, employers may be held personally liable for medical costs and lost wages if an uninsured worker is injured.

Learn More

By staying compliant, Kentucky employers can avoid legal trouble and foster a safer, more secure workplace. For workers’ compensation insurance near you, contact Ison Insurance Agency, Inc.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.